KPMG set to axe 400 staff due to closing of regional offices

KPMG continues to fall...

JOHANNESBURG, SOUTH AFRICA – OCTOBER 16: KPMG offices during South African Communist Party (SACP) supporters protest against ‘state capture’ on October 16, 2017 in Johannesburg, South Africa. SACP Gauteng secretary Jacob Mamabolo said KPMG has committed economic genocide in the country because of its corrupt activities with the Guptas. (Photo by Gallo Images / Netwerk24 / Felix Dlangamandla)

Auditing firm KPMG South Africa announced on Monday that it will be carrying out a “reshaping of the business” as well as new plans to strengthen leadership capacity. As a result, the company anticipates that “up to 400” people will be leaving the firm.

The changes follow a strategic review of the firm’s activities and take into account recent client losses and current levels of demand for certain services. They are the latest implementation by the firm in an attempt to restore confidence in the brand in South Africa.

KPMG in South Africa says the local brand will remain a “business of significant scale” with more than 130 partners and 2,200 employees. They will also be supported by the firm’s international teams comprising of over 200 000 people.

KPMG was almost fatally hit in 2017 after it was exposed for its role in facilitating dodgy Gupta deals. An internal investigation exposed the firm and it eventually had no choice but to come forward, make changes at the top and apologise.

These new leadership changes will involve placing a number of “senior KPMG partners” from across the globe into board and executive positions in the SA firm. The international partners will remain at the company for an extended period and ensure that “enhanced” procedures are followed.

KPMG South Africa Chief Executive, Nhlamulo Dlomu stated that although the decisions were tough, they still needed to be made.

“These hard decisions were necessary to put the firm on a more sustainable footing, while ensuring we continue to offer our clients the best service and support. We are putting quality and integrity at the heart of the business and, from now on, the firm will be focused on doing fewer things better. I am confident that we have taken the right steps to reform and reshape the business. Now we need time for these to take hold.”

In terms of the lost jobs, Dlomu stressed that the firm is taking all possible steps to ensure that things are “handled in a caring manner” and that everyone is “treated with dignity.”